Australia’s major superannuation funds have posted positive returns for the seventh consecutive year, according to Chant West, although this year’s results are lower than the previous three years.
In a note to investors, Chant West said the average median growth fund saw returns of 3 per cent, significantly below the last three years, which included a high of 15.6 per cent for 2012/13 and a low of 9.8 per cent in 2014-15.
Chant West director Warren Chant said the reduced returns shouldn’t be a concern to members however, as the cumulative return since the GFC sits at around 80 per cent, or 8.8 per cent per annum.
“That’s about 6.5% above the annual rate of inflation, so it’s comfortably ahead of the typical longer-term return objective for these funds which is to beat inflation by between 3% and 4% annually,” he said.
Mr Chant said this year’s positive returns in the face of “a very uncertain” global economy were indicative of diversification at play”.
“These funds are so well diversified across a wide range of growth and defensive asset sectors, including alternative and unlisted assets, they can successfully smooth out returns when listed share markets are struggling,” he said.
Investor confidence is on the rebound and the ASX hit a 12-year high on Monday. But it’s not all good news for the Australian economy. ...
While the Asia-Pacific region, excepting Japan, saw the world’s strongest dividend growth in the past decade, Australia has barely shown a...
One fund manager will release a new exchange-traded fund that will provide investors access to one of the fastest growing economies in the w...